S.Korea's Kia Motors shares hit near 5-year high on upbeat earnings

HL Mando

27/10/2020 02:24

** Shares of Kia Motors Corp  000270.KS  rise as much as
10.5% to hit a two-month high of 53,000 won ($46.92) after the
company reports better-than-expected quarterly operating profit 
    ** Kia reports Q3 operating profit of 195 billion won
($172.71 million) and excluding quality costs of 1.26 trillion
won, the figure would have been 1.2 trillion won; analysts were
expecting a profit of 755 billion won
     ** Revenue rises 8.2% on year to 16.3 trillion won
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    ** Kia enjoyed firm sales in the third quarter backed by
increased demand for its SUVs in the United States, Europe and
India, says Kevin Yoo, an analyst at eBEST Investment &
Securities
    ** Other auto shares also rise, with Hyundai Motor
 005380.KS  rising 3.8%, auto parts suppliers Mando Corp
 204320.KS  and Hyundai Mobis  012330.KS  climbing as much as
6.0% and 4.3%, respectively.
    ** The automaker says it booked 1.26 trillion won to cover
charges related to engine defects that increased the risk of
stalling and fire; years-long quality problems have cost Hyundai
and Kia nearly $5 billion and left the pair subject to a probe
by U.S. authorities over the manner of their recalls
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    ** The broader KOSPI market  .KS11  was up 0.2%, as of 0201
GMT


($1 = 1,129.0300 won)
    

 (Reporting by Heekyong Yang)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 6936 1470;))